Calculaterix.com
Sites and calculators for every day
VAT Calculator vat-calculator.net
Pakistan, Khyber Pakhtunkhwa: telecommunication: 19.5% standard rate: 15% special and reduced rates: 10% 6% 5% 4% 3% 2% 1%
This page covers sales tax on services in Khyber Pakhtunkhwa. Pakistan's federal sales tax on goods is a separate tax.
Advanced mode: You will see the effect of rounding on the VAT amount to be paid. See how the calculation is done.
See also: Percentage calculator
Tax calculator needs two values. You can e.g. fill in tax % and price - and get price before tax as result. Price before tax and price are rounded.
You can also choose the tax % by clicking the percentage in the table below.
Pakistan, Khyber Pakhtunkhwa | |
| telecommunication | 19.5% Telecommunication services. |
| standard rate | 15% Most taxable services not qualifying for a concessionary rate. The 15% rate also applies to cash-paid restaurant and hotel services supplied by corporate-sector entities. |
| special and reduced rates | 10% Includes cash-paid restaurant services supplied by qualifying non-corporate businesses and specified catering or hospitality services. 6% Restaurant and hotel services paid through debit or credit cards, mobile wallets or QR scanning. The 6% digital-payment rate also applies to corporate-sector entities, generally without input tax adjustment. 5% Specified concessionary services, including certain contractual, maintenance and professional services where the conditions for the reduced rate are met. 4% Government-funded construction, including ADP, PSDP and hydropower projects, subject to exemptions and transitional rules for older projects. No input tax deduction is allowed. 3% Specified property rental and leasing services, rental of utility meters, foreign exchange services and motor vehicle insurance. No input tax deduction is allowed. 2% Specified services and qualifying ongoing ADP projects approved from 1 July 2021 to 30 June 2025. For these projects, changes in contract value alone do not remove the 2% treatment, but it does not apply if the government-notified rates underlying the original contract (MRS, SOR, CSR or equivalent) have been increased. No input tax deduction is allowed. 1% Applies to narrowly defined concessionary services under the Second Schedule. |
| exempt without deduction | Specified services are exempt where listed in the First Schedule or covered by an exemption notification. Khyber Pakhtunkhwa does not provide a zero rate for services; exempt services and reduced-rate services must therefore be distinguished from zero-rated supplies. |
| reverse charge | Taxable services supplied in Khyber Pakhtunkhwa by a foreign or non-resident service provider remain subject to KP sales tax. Depending on the applicable collection and withholding rules, the recipient or designated withholding person may be required to account for or withhold the tax. |
| Past changes: | |
| 1 Jul 2025 | Sales tax on government-funded construction projects, including ADP, PSDP and hydropower projects, increases from 2% to 4%, without input tax deduction. Qualifying older ADP projects retain transitional treatment. Khyber Pakhtunkhwa Finance Act 2025 – section 1(3), Second Schedule, Part II, item 11 |
| 1 Jul 2025 | Restaurant and hotel taxation is revised. A 6% rate applies where payment is made through debit or credit cards, mobile wallets or QR scanning. Qualifying non-corporate restaurants generally pay 10% on cash transactions, while corporate-sector entities remain subject to 15% on cash transactions. Khyber Pakhtunkhwa Revenue Authority – Finance Act 2025 |
Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the tax administration's guidelines. The information was checked on 22 Sep 2026.
Pakistan, Balochistan | ||
| higher rate | 19.5% | |
| standard rate | 15% | |
| special and reduced rates | 10% 8% 6% 5% 4% 3% 2% 1% | |
Pakistan, Islamabad Capital Territory | ||
| standard rate | 15% | |
| reduced rate | 5% | |
https://www.fbr.gov.pk/Categ/The-Islamabad-Capital-Territory-Tax-on-Services-Ordinance-2001/771
Pakistan, Punjab | ||
| telecommunication | 19.5% | |
| standard rate | 16% | |
| special and reduced rates | 15% 8% 5% 3% | |
VAT rounding: the EU, the UK and other European countries
The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.
Roundings in VAT calculation: Mathematically impossible prices?
There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.
VAT Gap - How much VAT is left uncollected in EU countries?
9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.
In Europe there is VAT - in the US sales tax
In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.
Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.
VAT Calculator Articles Privacy Feedback / Language corrections
VAT-calculator.net: Bulgaria Czech Republic Germany Denmark Estonia Spain France Greece Hungary Italy Lithuania Latvia Netherlands Norway Poland Portugal Romania Slovenia Slovakia Sweden Turkey Ukraine Finland